The digital world is becoming more automated on a regular basis with the services utilized by entities in banking, healthcare, crypto or the e-commerce market. However, it leads to increasing cyber crimes as the automated platforms are prone to imposters and scammers.
ID spoofing and account takeovers are some of the most common types of cyber-attacks impacting millions of individuals around the world. According to the 2023 report, the most common cyber attacks executed were Identity theft taking over 94% of victims. However, the need for electronic verification has never been this important for the business industry.
The e-verification not only combats fraud and illicit activities but strictly complies with KYC and AML rules and regulations.
A Quick Insight to Electronic Verification
The process of validating the entity’s identity by using public and private databases is termed electronic verification. The standard verification is an obsolete process in the world where everything is operated online. Electronic verification is an important part of Know Your Customer(KYC) compliance. The verification involves the collection of documents and its testing against government databases to drive the results of consumers’ identities. Performing electronic verification can lead to the prevention of fraud and transactions involving stolen money or laundering illegal funds.
E-verifications offer an authentic service of fraud detection with the integration of AI-powered tools. However, the automated version of verification is now implemented in all sectors, including Fintech, crypto, banking, e-commerce and other investment industries. It is a successful approach that aims to drive growth and sustain a satisfactory consumer rate in all aspects of the business industry.
e-Verification Implementation in Different Use Cases
- Financial Sector
The finance sector is known for being one of the prime adopters of identity verifications. The financial industry is required to adhere to regulatory compliance strictly. Electronic verification works effectively in document verification and AML screening to prevent money laundering and terrorist financing in the finance departments. The automated verification has made the KYC procedure smooth and efficient.
- Banking Sector
Banks are recognized as a crucial platform in terms of data security and transaction dealings. The e-verification assists the banking sector in complying with KYC, AML, and CTF rules and regulations. It offers effective authentication of the consumer’s identity checks. Also, it plays a vital role in opening bank accounts and request handling for credit cards and loans. The digital process works efficiently with document verifications and KYC screening within seconds by providing a fully automated monitoring system.
- HealthCare Sector
Global eidv also work for the healthcare industry to protect personal credentials. The verification process of patients’ onboarding will assist in preventing unauthorized individuals from accessing sensitive medical details. The electronic verification is useful in patient identity verification for remote consultation and accession of digital health records.
- E-commerce Sector
The e-commerce market deals with everything virtually. Therefore, the sector contains the highest risk factors regarding money transactions and financial crimes. The electronic id verification services provides customer identity authentications in consumers’ onboardings. It assists with digital payment methods and combat the illicit activities damaging the business. It works effectively against imposters and account takeovers, offering a secure platform to do business.
- Telecommunication Sector
It is important to ensure the protection of mobile services, including SIM cards and mobile number porting. The implementation of electronic verification has become an essential tool for the telecommunication sector. Digital identifications assist with activating mobile subscriptions and combating SIM card fraud. It also offers a wide range of benefits, such as real-time verification and the elimination of non-compliance penalties, while providing a satisfactory customer experience.
Concluding the overall electronic check verification services, the procedure serves as a crucial tool in different case scenarios, be it the fintech industry, crypto market, healthcare sector, sharing companies or the e-commerce market. The implementation of strong automated identity verification solutions can improve the company’s security structure and consumer data protection. One of the primary benefits of digital verification is its strict adherence to the regulatory requirements of KYC and AML. The artificial intelligence integration makes it an advanced approach that not only verifies the new consumers but also stays up to date on the existing clients and entities.
FAQS Related to Electronic Verification
- What is electronic verification?
Electronic verification is the digital process of validating an entity’s identity to ensure money laundering and fraud prevention.
- What is an electronic verification code?
A 10-digit alphanumeric code sent to the mobile device for validating an entity digitally is called an electronic verification code(EVC).
- Explain the significance of electronic identification in 3 steps?
- Improve security
- Mitigate risk factors
- Adhere regulatory compliance
- How does the eidv service provider work?
The eidv service provider works by collecting, validating and reporting the results of the entity’s identity data.